The tax levy on mobile money transactions, outlined in Finance and National Planning Minister Situmbeko Musokotwane’s 2024 national budget presentation, has now been activated. Musokotwane initially introduced the levy on September 29, 2023, with a fee structure ranging from eight ngwee to K1.80 based on the transaction value for person-to-person mobile money transfers.
The proposed fee structure is as follows:
| Transaction Value Range | Tax Rate (Ngwee) | Tax Rate (K) |
|---|---|---|
| K1 to K150 | 0.08 | – |
| Above K150 to K300 | 0.10 | – |
| Above K300 to K500 | 0.20 | – |
| Above K500 to K1,000 | 0.50 | – |
| Above K1,000 to K3,000 | 0.80 | – |
| Above K3,000 to K5,000 | – | 1.00 |
| Above K5,000 to K10,000 | – | 1.50 |
| Above K10,000 | – | 1.80 |
Additionally, the following tax changes have been implemented:
- Specific excise duty on non-alcoholic beverages increased to 60 ngwee per litre from 30 ngwee per litre.
- Specific excise duty for tobacco and tobacco products increased to K400 per mille from K361 per mille.
- Introduction fee of K3,750 for DNA testing under the National Forensic Science and Biometrics Department.
- License fee for commercial Kapenta operators increased to K4,000.00 from K3,333.00 (last revised in 2011).
This move is part of the government’s efforts to generate revenue and maintain fiscal stability. The activation of the mobile money transaction tax aligns with the broader fiscal measures introduced by the minister to bolster the country’s financial health.
In addition to the mobile money transaction tax, other tax changes have come into effect, including an increase in specific excise duty on non-alcoholic beverages to 60 ngwee per litre from 30 ngwee per litre. Musokotwane also proposed an increment in specific excise duty for tobacco and tobacco products to K400 per mille from K361 per mille.
Moreover, an introduction fee of K3,750 for DNA testing under the National Forensic Science and Biometrics Department has been implemented. Additionally, the license fee for commercial Kapenta operators has been raised to K4,000.00 from K3,333.00, marking the first revision since 2011.
These fiscal adjustments are aimed at achieving financial sustainability and supporting key sectors while aligning with the government’s revenue mobilization strategy outlined in the national budget.
